FINANCES OF THE REICH

Gisborne Herald, Volume LXVI, Issue 20028, 29 August 1939, Page 3

FINANCES OF THE REICH

CRISIS DEVELOPING CONVICTION IN BERLIN LONDON, Aug. 18. Reports that a grave financial crisis is developing in Germany receive much prominence in London financial journals. The correspondent of the Financial News in Berlin says that there are. persistent rumours that Dr. Schacht, the displaced head of the Reichsbank, was recalled secretly and received by Herr Hitler at Bcrcfitesgaden, preparatory to his resuming a decisive role In the management of German economics.

The rumours, the correspondent states, are a reflection of the conviction that the long-expected climax has been reached. This conviction prevails throughout Berlin business and banking circles, which believe that only Dr. Schacht’s ruthless methods are capable of saving the Reich from impending disaster. Armaments Revision Other steps, the correspondent goes on, might postpone, but not avert, a catastrophe. Doubts exist whether the Nazis’ regime could accept Dr. Schacht’s proposals because they would undoubtedly include a revision of the armaments programme and a modification of many features of Goering’s four-year economics plan. Reichsbank figures prove that the decline in the country's finances is not due to seasonal influences.

According to the Berlin correspondent of tlie Financial Times, the Reich’s financial machinery still gives an appearance of operating smoothly, but both men and machines are being worn out, and the financial structure is showing signs of weariness. Manufacturers, he adds, complain of slackness and a decline in discipline among factory workers.

The Treasury also has grounds to complain about the lack of financial discipline on the. part of business men and bankers.